Online advertising spend in New Zealand

Just this week Interactive Advertising Bureau New Zealand released, prepared together with PwC, its quarterly analysis of digital media market and advertising spend for Q4 2013. This is usually the busiest part of the year for all advertisers, with Christmas and summer campaigns pushing budgets to record levels.

Increase in advertising spend

Globally, the online advertising market is expected to grow by at least 5% in 2014, with a further 15% increase by 2016. As we mentioned previously, mobile is now the main driver of advertising spend growth, with over 1/3 of that increase estimated from this channel alone. In addition, paid search will grow at least 14% YoY, across all engines.

Digital investment in New Zealand

How does this reflect on New Zealand’s trends? In terms of advertising market share, we’re not far off. 2013 saw an overall increase in online advertising spend of 39% vs. 2012. And if this percentage doesn’t make an impression, we can tell you that the total online advertising spends for 2013 stands at estimated $470m. Yes, that’s nearly half a billion spent on different types of online ads in New Zealand alone.  From that overwhelming amount, 44% went to paid search and online directories. online advertising spend nz

The above 2007 to 2013 analysis clearly shows a very impressive growth in online advertising investment. This is fuelled by both – brands investing more in marketing as a whole, and parts of their budgets being moved from dated channels, like print and radio, to the digital space.

Video and Mobile

Except mobile, video is definitely the channel to watch and include in your 2014 strategy, as according to this report – there’s a lot going on in that space already. In Q4 alone, nearly $6m was spent on video advertising, an increase of 33% from Q4 2012. This is primarily driven by rapidly growing consumption of online video and the ease of access to TV shows online. With On Demand services now widely available, users more often watch their favourite shows online. mobile advertising spend nz

And of course, we need to mention mobile again. A 73% YoY increase in investment can’t be ignored. Mobile advertising is currently unstoppable, with $5.6m invested in this channel alone in 2013 (up from $2.83m in 2012). At this stage you really have no excuse not to bring mobile into your core marketing strategy.  With nearly 48% of New Zealanders using tablets for their internet browsing, it’s important you monitor that trend through your website analytics as well, to ensure the user experience on all portable devices is equally good.

It’s important to remember that marketing budgets of this size are of course coming from big corporates. This doesn’t mean that a small local business can’t get a slice of this pie. Being smart with your strategy, preparing to analyse and explore niche audiences and new targeting and optimizing techniques, can and will deliver results for your business regardless of the advertising spend. So if you haven’t started yet – get in touch. It’s a perfect time.

*All figures come from the IABNZ and PwC Ad Spend Q4 2013 report

By | 2018-05-10T12:38:39+00:00 February 28th, 2014|Categories: Digital Marketing Strategy, Search Engine Marketing (SEM)|

About the Author:

Agata is the Data & Analytics director at NZDMI, with real passion for anything numbers-related. She spends most of her time sieving through endless amounts of data to find answers to the bigger and the smaller questions.